Two-thirds of the funding total was raised in the second half of the year.
The $2.2 billion figure reflects expectations during the year that African startups would raise less money than in previous years. Fundraising has been falling since the peak of 2022 when startups raised $4.6 billion, according to ATBD.
One reason for the dip last year was a 40% reduction in funding in the form of debt, ATBD stated, while equity type deals fell by 11% by comparison.
Most startup funding is in the form of equity but debt deals have been an increasing source in recent years. It rose nearly six-fold between 2018 and 2022 to $1.5 billion, according to data by African tech investor Partech Partners.
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